The cleantech and life sciences innovator and engineering services solution provider invents, develops, and commercializes platform technologies to solve challenging environmental problems. Its products target issues like poly-fluoroalkyl substance (PFAS) contamination, advanced water and wastewater treatment, industrial odor control, air quality control, infection control, and other environmental remediation challenges.
segments include ONM Environmental, selling odor and volatile organic control products and services in Westminster, California; Clyra Medical Technologies, developing and selling medical products; BLEST, providing professional engineering services for outside clients; BioLargo Water, commercializing the firm's Advanced Oxidation System (AOS) technology, and liquid sodium battery company BioLargo Energy Technologies, Inc.
According to the company, it "sells and distributes sustainable, best-in-class water treatment systems that solve some of the toughest challenges in the modern water industry. From PFAS capture and destruction to water reuse technologies, every system delivers on a promise of uncompromising technical performance, sustainable energy usage and waste generation metrics, and clear ROI for operations that use them."
The Catalyst: New Board Member
On February 6, the company announced that water industry luminary Jeffrey Kightlinger is joining the board of directors of BioLargo Equipment Solutions & Technologies, the firm's subsidiary overseeing the sales, marketing, and distribution of the company's innovative water treatment technologies, including the low-waste PFAS treatment system.
As the former CEO of the Metropolitan Water District of Southern California (MWDSC), Kightlinger has impressive chops. He is renowned for his distinguished service as the longest-serving CEO of the Metropolitan Water District of Southern California. Overseeing the nation's largest municipal water provider, he was responsible for the water of over 19 million Californians.
During his tenure as CEO, Mr. Kightlinger oversaw a US$1.8 billion budget and was responsible for delivering reliable, safe water to over 300 cities, including the counties of Los Angeles, Orange, Riverside, San Bernardino, San Diego, and Ventura.
"We believe that BLGO can achieve FY23/24/25 revenues of US$11.7M/US$18.5M/US$25.5M, previously US$10.9M/US$17.5M/US$25.0M, respectively," Richard Ryan of Oakridge wrote.
Many of MWDSC's world-renowned water technology innovation programs began under his watch. Kightlinger is recognized internationally as a top subject matter expert on water conservation, quality, and stewardship, thanks to regular interviews across the spectrum of significant water industry publications and magazines.
In the new role, he will contribute his decades-long experience by connecting the company with other leaders in the nation's water industry and advising the company in securing more extensive and high-profile municipal water treatment projects for proprietary treatment technologies.
According to the firm, Kightlinger agreed to join the board in part because of BioLargo's innovative, effective, and sustainable water treatment solution for drinking water contamination by per- and poly-fluoroalkyl substances (PFAS), commonly known as "forever chemicals."
BioLargo Equipment Solutions & Technologies President Tonya Chandler says, "Our water treatment solutions are unique and remarkable in their technical claims and performance, and it is critical to have the right leaders on board to help guide the company to make the greatest impact in the water industry."
"We're honored to have Jeffrey join our board, as his past accomplishments in the water industry have been hugely impactful in California."
"I am honored to join the board of BioLargo Equipment Solutions & Technologies," Kightlinger commented, "and I hope that my experience in municipal water management can propel its innovative products, such as its PFAS removal system, the AEC."
Why This Sector? Growing Need
Environmental remediation is a large part of future plans for governments worldwide. According to a recent report by Exactitude Consultancy, "the global PFAS Remediation market is anticipated to grow from US$478.65 Million in 2023 to US$1,125.96 Million by 2030, at a CAGR 13.0 % during the forecast period."
According to the consultancy, "PFAS compounds can migrate through soil and groundwater, potentially contaminating larger areas if left unaddressed. Remediation helps contain the spread of contamination and prevent it from affecting new areas. Many countries and regions have enacted or are considering regulations to limit PFAS exposure and contamination. Compliance with these regulations often requires PFAS remediation for affected sites."
"A major bull market in the stock is therefore expected, and it looks like it just started this January," Technical Analyst Clive Maund wrote.
"Remediation efforts aim to restore clean water sources and protect public drinking water. Many PFAS compounds were used for decades in various industrial and commercial applications, leading to historical contamination. Remediation is necessary to address legacy contamination and rectify past environmental harm."
The report warns that widespread PFAS contamination can have serious economic consequences, including reduced property values, legal liabilities, and the cost of treating contaminated water. Remediation efforts, like those offered by BioLargo, can mitigate these financial burdens. They also convey that persistent and harmful chemicals must be managed and disposed of carefully.
Why This Company? New Contract, Ongoing Revenue Success
While Kightlinger joining the board makes the prospect of more large sales likely, BioLargo recently secured a contract for PFAS removal technology from a municipal drinking water system in New Jersey, with other sales already in negotiation.
Additionally, revenue to this point has been impressive. On January 22, the company announced that its annual revenues for the year ended December 31, 2023, were more than double those of 2022, representing the second year in a row revenues have doubled.
Indeed, the company has a considerable history of consistently breaking revenue records. The increasing sales are primarily driven by sales of Pooph. This pet odor control product line features safe, effective, eco-friendly products sold through national retailers like Amazon, Walmart, and Chewy.
A company press release states, "BioLargo serves as a technology partner and supplier to Pooph, Inc., and they manage the national marketing, branding, and distribution for the Pooph line of products."
Company President and CEO Dennis P. Calvert says, "The success of Pooph validates our business model of inventing a best-in-class technology-based product, proving it up through world-class R&D, and partnering to maximize commercial reach. The team at Pooph informs us that they expect to continue growing sales in 2024, and by doing so, they will continue to increase the value of their brand. These are both great developments for BioLargo."
"The response from the marketplace to our PFAS removal and water treatment related technologies as well as our long duration battery storage solution is highly encouraging for 2024 and beyond," he continues. "We expect to earn our first revenues from our proprietary PFAS treatment technology this year thanks to our securing a key municipal drinking water project, the success of which we anticipate will springboard the technology into more and more projects."
Note that the company is still working to conclude its audit of its 2023 financial statements and intends to file its annual report with the SEC at the end of March. Thus, revenue estimates for 2023 are preliminary and subject to change pending review and audit by the company's independent registered public accounting firm.
Why Now? Already Making Money
Analysts and newsletter writers seem to agree that it's time to move in on BioLargo. A January 29 report by Richard Ryan of analysis firm Oak Ridge Financial explains that "the basis of our FY23/24 estimate is the assumption that BLGO's industrial odor segment and engineering services will remain steady and Pooph will continue to outperform competitors via online sales channels (Amazon, Chewy, etc.)."
"Looking forward, the company expects to add to its 20K retail stores by the end of 2024, and, based on the timing of the distribution, these additional stores will begin to come online more in the second half of 2024, in our opinion. Paired with additional retail stores in 2025, we believe that BLGO can achieve FY23/24/25 revenues of US$11.7M/US$18.5M/US$25.5M, previously US$10.9M/US$17.5M/US$25.0M, respectively."
"In addition, CupriDyne and engineering service sales have been and are expected to remain consistent, giving the company a reliable stream of revenue."
Technical Analyst Clive Maund concurred in a February 7 article, stating that the firm "is a cleantech company that, over the course of many years, has developed a broad range of products, solutions, and technologies that are now beginning to make serious inroads into the marketplace, so that, even though the company has in the past had to battle serious "cash burn" and cost issues that necessitated stock dilution, it is now winning through with revenues growing rapidly as sales accelerate dramatically."
Maund explained that the company "supports four subsidiaries that develop and commercialize cleantech products and specialty services. BioLargo holds the intellectual property for each technology and product. These four subsidiaries are:
- ONM Environmental Products and Services, whose flagship product, CupriDyne Clean, eliminates odors in an environmentally friendly way.
- BioLargo Engineering Science and Tech, whose flagship product, the Aqueous Electrostatic Concentrator (AEC), eliminates FFAS (polyfluoroalkyl substances) from contaminated water.
- BioLargo Water, whose flagship product, the Advanced Oxidation System (AOS), confers exceptional disinfection performance of water with concurrent decontamination.
- BioLargo Energy Technologies, whose flagship product is the Sodium–Sulphur Long Duration Energy Storage (LDES) Battery Technology, has the potential to revolutionize the industry for reasons that become clear when you look at its features.
In addition, there is a medical technologies subsidiary, Clyra Medical Technologies Inc., which has developed advanced wound care products."
Maund expresses that the key point for investors to grasp is that these subsidiaries represent years of developmental work and investment now being brought to fruition with market-ready products and services that are being rolled out and gaining widespread acclaim and uptake, which is why the company's revenues are taking off.
"The company has been burdened with high developmental costs for its broad range of products and services," he writes, "and this necessitated stock dilution to keep going, but as we have discussed, these are now perfected or close to being perfected, and being rolled out and gaining wide acceptance and interest in the marketplace resulting in robust sales and revenue growth."
"A major bull market in the stock is therefore expected, and it looks like it just started this January."
As Ryan states in the opening of his report, "Modeling expectations are difficult to time, but we endeavored to incrementally include PFAS-related revenues and developed a bull case Price Target of CA$0.45."
Streetwise Ownership Overview*
Perhaps Maund sums it up best, writing, "The conclusion is that BioLargo is a solid long-term investment with a lot more upside than many might expect, and if, as suspected, it is indeed marking out a bull Flag, then it is even a Buy for shorter-term traders whilst it remains within the confines of the Flag."
Ownership and Share Structure
About 14.6% of BioLargo is owned by insiders and management, according to Yahoo Finance. They include Chief Science Officer Kenneth Code with 8.67%, CEO Calvert with 3.41%, and Director Jack Strommen with 1.5%, Reuters reported.
About 0.04% is held by the institution First American Trust, Reuters said.
The rest, about 85%, is retail.
Its market cap is US$61.87 million, with about 289.5 million shares outstanding and about 248 million free-floating. It trades in a 52-week range of US$0.2398 and US$0.15.
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- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of BioLargo Inc.
- Owen Ferguson wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
- This article does not constitute medical advice. Officers, employees and contributors to Streetwise Reports are not licensed medical professionals. Readers should always contact their healthcare professionals for medical advice.
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Disclosures for Clive Maund:
Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed.
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.